Walmart’s recent change to free two-day shipping for online orders, no membership required, is the latest in a series of moves the company has made to fight Amazon and grow its e-commerce business. Last year, it purchased Jet.com and installed Jet’s founder, Marc Lore, as head of its e-commerce division. It has also been acquiring e-commerce niche players, including Shoebuy and outdoor gear retailer Moosejaw, and digital technology companies, such as search experts Adchemy and cloud platform OneOps.
Walmart Won’t Stay on Top If Its Strategy Is “Copy Amazon”
Free two-day shipping is table stakes in e-commerce today.
March 21, 2017
Summary.
Walmart’s recent change to free two-day shipping for online orders, with no membership required, is the latest in a series of moves the company has made to fight Amazon and grow its ecommerce business. But Amazon’s Prime program is much more than free, fast shipping. Moreover, Walmart’s key strategic strengths stem from its unbeatable geographic footprint and low prices. Trying to beat Amazon at its own game is not only likely to fail — it’s also not in Walmart’s best interests.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.